Question

Which among the following is not an advantage of effective delegation in an organisation?

• A. The managers are able to function more efficiently as they get more time to concentrate on important matters.
• B. It helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures.
• C. It establishes superior-subordinate relationships, which are the basis of hierarchy of management.
• D. It promotes flexibility and initiative because each division functions as an autonomous unit which leads to faster decision making.

Hint:

Autonomous divisions and product-based business units are features of a Divisional Structure, not delegation of authority.

Answer 1

The Correct Option is D

Concept:
Delegation is the downward transfer of authority from a superior to an immediate subordinate.
It acts as an operational necessity to empower employees, groom future leaders, relieve managers of routine burdens, and establish clear superior-subordinate reporting hierarchies.

Step 1: Evaluating the Merits of Delegation:
$\bullet$ Effective Management: Managers delegate routine operational work, allowing them to focus on high-priority strategic activities, matching statement (A).
$\bullet$ Facilitation of Growth: By training subordinates to handle responsibilities, an organization builds internal talent ready to lead new expansion projects, matching statement (B).
$\bullet$ Basis of Management Hierarchy: Authority-responsibility relationships define reporting channels, which constitute the management hierarchy, matching statement (C).

Step 2: Identifying the Misattributed Feature:
Statement (D) mentions that “each division functions as an autonomous unit which leads to faster decision making.”
This is a distinctive advantage of a Divisional Organisational Structure or widespread corporate Decentralisation, where entire product-line units operate independently as profit centres.
Delegation is an interpersonal process between two individuals (superior and subordinate) and does not by itself establish autonomous divisional units.

Step 3: Verification of Options:
Statements (A), (B), and (C) are confirmed advantages of delegation.
Statement (D) is not an advantage of delegation, which makes it the correct answer to the question.

Step 4: Final Answer:
Therefore, the correct choice is (D).